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Business Recorder
05-08-2025
- Business
- Business Recorder
China stocks extend gains as key services data lifts sentiment
HONG KONG: China and Hong Kong stocks climbed for a second consecutive session on Tuesday, recovering from steep losses last week, as a private-sector survey showed strong recovery in China's services activity in July, lifting investor sentiment. China's blue-chip CSI300 Index was up 0.3% by the lunch break, while the Shanghai Composite Index gained 0.5%. Hong Kong benchmark Hang Seng also advanced 0.3%. The S&P Global China General Services PMI rose to 52.6 in July from 50.6 in the prior month, marking the fastest expansion since May 2024, fuelled by stronger demand and a rise in new export orders. The S&P PMI is considered a better read of trends among smaller, export-oriented firms, particularly along the east coast. The data suggests service sector activity picked up pace in July, Goldman Sachs analysts said in a note, but the significant divergence between the official services PMI (which was down in July) and the S&P one implies 'substantial variation across services sub-industries', they added. Gains in Chinese stocks also tracked overnight Wall Street rally, fuelled by growing bets on U.S. interest rate cuts. Still, analysts expect some consolidation of gains in the next few weeks given the uncertainties on U.S.-China tariff rates and persistent domestic tough business environment. Limited signs of further progress appeared in recent tariff negotiations between the two countries have driven weaker positioning in China and Hong Kong stocks, Citi analysts said in a note. Some Hong Kong-listed firms have reported disappointing earnings, in contrast to the strong results from U.S. companies, particularly in the tech sector, which could lead to market consolidation, said Dickie Wong, Kingston Securities executive director. By sector, biotech firms jumped 2% to lead gains in Hong Kong. In mainland A-shares, Anime comic and game shares and bank stocks outperformed, up 1% each.
Forbes
19-05-2025
- Business
- Forbes
Alibaba Shares Fall On Report Of U.S. Scrutiny Of Apple AI Deal
The Alibaba Group booth at the World Artificial Intelligence Conference (WAIC) in Shanghai in 2023. Qilai Shen/Bloomberg Shares in Chinese e-commerce giant Alibaba fell as much as 4.8% on Monday in Hong Kong as a deal to provide AI technology to iPhones sold in China faced a possible backlash in the U.S. Investors in Alibaba, which is also listed on the New York Stock Exchange, were reacting to a New York Times story published Saturday that said the U.S. government is looking into Apple' s plan to use Alibaba's AI to offer more intelligent smartphone assistants in its second largest market by sales, China. According to the Times story, White House officials and congressional lawmakers are concerned that such a plan might help a Chinese company strengthen its AI capabilities and deepen Apple's exposure to China's censorship and data sharing laws. The paper cited three anonymous sources with knowledge of the matter. Alibaba and Apple didn't respond to emailed and messaged requests for comment from Forbes Asia. 'Under the trade war between U.S. and China, issues such as small parcel tariffs and [Alibaba's] collaboration with Apple have become sources of concern,' Dickie Wong, Hong Kong-based executive director of research at Kingston Securities, says by text messages. Wong was also referring to the Donald Trump administration's decision to impose duties on cross-border packages valued $800 or less. Although such duties were lowered following China-U.S. trade negotiations that led to most of the tit-for-tat tariffs to be suspended for 90 days starting from mid-May, tensions between the world's two largest economies remain high, according to a May 16 report from S&P Global Ratings. 'In particular, the recent U.S.-China agreement is only for a 90-day pause,' the report reads. 'After that period lapses, and absent an agreement, tariffs are likely to go up again, perhaps sharply.' For years, Alibaba and competitors Shein and PDD Holding's Temu platform used the duty exemption on small parcels to ship directly to American consumers and expand in the U.S. The company, which acknowledges globalization as a key driver of its growth, reported last Thursday disappointing results for the three months that ended in March. Total sales for the period rose 7% year-on-year to 236.4 billion yuan ($32.6 billion). Net income came in at 12 billion yuan, a 1,203% surge from the same period a year ago that was largely due to changes in the value of the company's equity investments. Even so, the results missed market expectations, Wang Xiaoyan, a Shanghai-based analyst at research firm 86Research, says by WeChat. Alibaba's New York- and Hong Kong-listed shares plunged Friday after the weaker-than-expected results were reported. Wang adds that profit down the road may fluctuate further as Alibaba invests more in so-called on-demand delivery services, which promise to deliver items ordered online within an hour. Investors were hoping for higher growth at Alibaba's cloud computing unit, where sales grew 18% year-on-year to 30.1 billion yuan during the quarter, as they thought China's AI advances might lead to more use of the company's products that help to crunch and store data, she says.
Business Recorder
17-05-2025
- Business
- Business Recorder
China, HK stocks dip with earnings
HONG KONG: Chinese and Hong Kong stocks dropped on Friday, as market sentiment came under pressure from renewed US-China tech tensions and a disappointing earnings report from Alibaba. Both markets ended the week positively, with the Hang Seng Index posting a fifth consecutive weekly gain. At the close, the Shanghai Composite index was down 0.4%; while China's blue-chip CSI300 index fell 0.46%. Liquor and insurance companies led the decline, both dropping 1.4%. In Hong Kong, the Hang Seng Index retreated 0.46%. Index heavyweight Alibaba Group lost more than 4% after the e-commerce giant posted quarterly revenue below analysts' estimates on Thursday. On the geopolitical front, the US Commerce Department is considering placing more Chinese companies, including ChangXin Memory (CXMT), on its restricted export list, a person familiar with the matter told Reuters. The Bureau of Industry and Security is also looking at adding subsidiaries of Semiconductor Manufacturing International Corporation and Yangtze Memory Technologies Co to the 'Entity List', the source said. 'Market focus has shifted to the US-China competition on other fields, such as semiconductor and healthcare, after the two countries significantly reduced tariffs for each other,' said Dickie Wong, executive director of research at Kingston Securities. While US-China tariff truce is a positive surprise to the market, a durable resolution remains challenging, given the complex bilateral relationship, Morgan Stanley analysts said in a note, adding sentiment on mainland A-shares edged down this week with lower trading volume.
Business Recorder
16-05-2025
- Business
- Business Recorder
China, HK stocks fall with earnings, US tech restrictions in focus
HONG KONG: Chinese and Hong Kong stocks extended their losses on Friday, as market sentiment came under pressure from renewed US-China tech tensions and a disappointing earnings report from Alibaba. Tech shares lift Hong Kong stocks, earnings in focus At the midday break, the Shanghai Composite index was down 0.52% at 3,363.32 points. China's blue-chip CSI300 index was down 0.57%, with its financial sector sub-index lower by 1.31%, the consumer staples sector down 1.04%, the real estate index down 0.61% and the healthcare sub-index down 0.36%. In Hong Kong, the Hang Seng Index was down 0.81% at 23,262.80. Index heavyweight Alibaba Group lost 5.3% by midday after the e-commerce giant posted quarterly revenue below analysts' estimates on Thursday. On the geopolitical front, the US Commerce Department is considering placing more Chinese companies, including ChangXin Memory (CXMT), on its restricted export list, a person familiar with the matter told Reuters. The Bureau of Industry and Security is also looking at adding subsidiaries of Semiconductor Manufacturing International Corporation and Yangtze Memory Technologies Co to the 'Entity List', the source said. 'Market focus has shifted to the US-China competition on other fields, such as semiconductor and healthcare, after the two countries significantly reduced tariffs for each other,' said Dickie Wong, executive director of research at Kingston Securities. While US-China tariff truce is a positive surprise to the market, a durable resolution remains challenging, given the complex bilateral relationship, Morgan Stanley analysts said in a note, adding sentiment on mainland A-shares edged down this week with lower trading volume. The smaller Shenzhen index was up 0.34%, the start-up board ChiNext Composite index was higher by 0.16% and Shanghai's tech-focused STAR50 index was down 0.59%.
Hindustan Times
16-05-2025
- Business
- Hindustan Times
China, HK stocks fall with earnings, US tech restrictions in focus
HONG KONG, - Chinese and Hong Kong stocks extended their losses on Friday, as market sentiment came under pressure from renewed U.S.-China tech tensions and a disappointing earnings report from Alibaba. ** At the midday break, the Shanghai Composite index was down 0.52% at 3,363.32 points. ** China's blue-chip CSI300 index was down 0.57%, with its financial sector sub-index lower by 1.31%, the consumer staples sector down 1.04%, the real estate index down 0.61% and the healthcare sub-index down 0.36%. ** In Hong Kong, the Hang Seng Index was down 0.81% at 23,262.80. ** Index heavyweight Alibaba Group lost 5.3% by midday after the e-commerce giant posted quarterly revenue below analysts' estimates on Thursday. ** On the geopolitical front, the U.S. Commerce Department is considering placing more Chinese companies, including ChangXin Memory , on its restricted export list, a person familiar with the matter told Reuters. ** The Bureau of Industry and Security is also looking at adding subsidiaries of Semiconductor Manufacturing International Corporation and Yangtze Memory Technologies Co to the "Entity List", the source said. ** "Market focus has shifted to the U.S.-China competition on other fields, such as semiconductor and healthcare, after the two countries significantly reduced tariffs for each other," said Dickie Wong, executive director of research at Kingston Securities. ** While U.S.-China tariff truce is a positive surprise to the market, a durable resolution remains challenging, given the complex bilateral relationship, Morgan Stanley analysts said in a note, adding sentiment on mainland A-shares edged down this week with lower trading volume. ** The smaller Shenzhen index was up 0.34%, the start-up board ChiNext Composite index was higher by 0.16% and Shanghai's tech-focused STAR50 index was down 0.59%. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.15% while Japan's Nikkei index was down 0.04%.
